Open AccessAccommodation Capacity, Trade Openness and International Tourism Demand in Croatia
Author(s) -
Nataša Erjavec,
Kristina Devčić
Publication year - 2021
Publication title -
tourism
Language(s) - English
Resource type - Journals
eISSN - 1849-1545
pISSN - 1332-7461
DOI - 10.37741/t.70.1.3
Subject(s) - openness to experience , accommodation , tourism , context (archaeology) , panel data , economics , exchange rate , macroeconomics , econometrics , geography , psychology , social psychology , archaeology , neuroscience , biology
This paper investigates the determinants of international tourism demand in Croatia, a country whose economy is heavily dependent on tourism. A particular focus is placed on the role of accommodation capacity and trade openness, two demand drivers that havebeen rarely examined in combination. Using the difference GMM estimator, adynamic panel model of international tourism demand in Croatia is estimated,employing annual data for 16 tourism generating countries from 2007 to 2019.The results show that the lagged dependent variable, income, accommodationcapacity, and exchange rate have a positive effect on international tourismdemand, while the impact of relative prices and trade openness prove to beirrelevant in the Croatian context.